Cboe Sees Enhanced Global Market Data and Access Services in 2025

In a story in The Trade news Stephen Dorrian, head of market data and access services, Europe, at Cboe Data Vantage outlined how the data landscape is set to evolve in 2025 and beyond. He noted the key changes to look out for when it comes to consumption, and what’s top of the list of priorities going forward. The main trend is the increased demand for market data globally, particularly from international investors wanting access to US and European markets.  This demand is being driven by global interest in the US market – investors want access to the outperformance of stocks as well as the expansion in retail trading across the globe.  Also, there is notable demand for European equities data in Asia Pacific, as brokers look to offer a broader range of securities to their customers.  The other change that will impact consumption in Europe is the introduction of a consolidated tape for equities. Incumbent European exchanges, through their operation of closing auctions and in the absence of a consolidated tape, enjoy a dominant position in the provision of market data to the institutional community. The introduction of a real-time pre- and post-trade consolidated tape in both the EU UK will be key to introducing a competitive dynamic in the provision of market data. As with market data, customers are looking for better, globally consistent and more efficient services from their key providers when it comes to market access. Finally, there is also new regulatory technical standards from ESMA on what constitutes “reasonable commercial basis”, the principle by which market data is to be priced by EU exchanges. The final text came out recently and while the industry is still analyzing what it may mean, it has the potential to change the dynamic and licensing constructs we’re all familiar with today.